What does the 'fv' do in the PMT Function?

Thank you in advance,
Annie

Say you take a loan of 1000 and at end of 12 months want to leave a loan
balance of say $400.
How much would you pay in equal instalements in 12 months in order to pay
off 600 of loan and leave 400 ?
FV is that $400
therefore
=PMT(rate/12,12,-1000,400)


"Annie" wrote in message
...
What does the 'fv' do in the PMT Function?

Thank you in advance,
Annie

Good answer from N
Sometimes this remaining amount is paid off with a "balloon payment"


--
Bernard V Liengme
www.stfx.ca/people/bliengme
remove caps from email

"Annie" wrote in message
...
What does the 'fv' do in the PMT Function?

Thank you in advance,
Annie

N Harkawat wrote...
Say you take a loan of 1000 and at end of 12 months want to leave a
loan
balance of say $400.
How much would you pay in equal instalements in 12 months in order to
pay
off 600 of loan and leave 400 ?
FV is that $400
therefore
=PMT(rate/12,12,-1000,400)
....
Putting this a different way,

PMT(r,n,PV,FV) = PMT(r,n,PV+FV/(1+r)^n)